Paxos won first approval to issue USD stablecoin in Singapore
Crypto infrastructure firm Paxos has received approval in principle from Singapore's regulator for a new entity that plans to launch a US dollar-backed stablecoin.
In a statement on November 15, Paxos said it received the first nod from the Monetary Authority of Singapore (MAS) for its new entity, Paxos Digital Singapore Pte. Ltd. The new firm may offer digital payment token services and plans to issue a US dollar stable coin cleared by the MAS proposed stable coin regulations.
Once fully licensed, Paxos said it will be able to partner with corporate clients to launch a stablecoin in Singapore.
“Global demand for the U.S. dollar has never been stronger, but it is difficult for consumers outside of the U.S. to access dollars safely and with regulatory protections,” said Walter Hessert, head of strategy at Paxos. “This approval in principle from MAS will allow Paxos to bring its ecosystem to more users around the world.”
In the year On August 15, MAS announced its final regulatory framework for Storcoin targeting unbanked tokens denominated in Singapore dollars or G10 currencies such as the euro, British pound and US dollar and whose distribution exceeds 5 million Singapore dollars ($3.7 million).
@MAS_sg has announced features of a new regulatory framework that seeks to ensure high-value stability for #stablecoins managed in #Singapore . pic.twitter.com/LBUoOGY16P
— MAS (@MAS_sg) August 15, 2023
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In the year On August 7, PayPal launched a USD-backed stablecoin – PYUSD – issued by Paxos.
Paxos previously issued Binance's now-defunct BUSD stablecoin, but was ordered to stop issuing tokens by the New York Department of Financial Services after the agency declared the stablecoin an unregistered security.
Paxos says all stablecoins are backed entirely by US dollars and cash, adding that it provides monthly verifications and maintains reports to ensure compliance.
Journal: Unstable Coins: Devaluation, Bankruptcy and Other Risks Ahead.
